6 Cities Where First-Time Homebuyers Can Score Big Savings in 2025
Written by
Daisy Carrington
Edited by
Zuri Anderson
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After years of stiff competition and soaring rates, 2025 may finally be the year first-time buyers can find some breathing room. More homes are hitting the market, giving buyers leverage they haven’t had since before the pandemic.
“Inventory is higher, and sellers are motivated,” said Janelle Chmura, a realtor with Smith & Associates Real Estate. “That means buyers can negotiate on price or even get credits for closing costs.”
Chmura stresses that waiting for rates to fall may backfire.
“If you hold off, more people will be out shopping when rates drop — and then you’re competing again,” she said. “It’s smarter to get in now, negotiate the best deal you can and refinance later if rates improve.”
Here are six cities where the conditions in 2025 are especially promising for first-time homebuyers.
Oklahoma City, Oklahoma
Oklahoma City remains one of the best-kept secrets for buyers just entering the market. More than 70% of the city’s housing stock is made up of starter-sized homes, according to a 2025 Construction Coverage report.
The average home value is a modest $205,000 according to Zillow, and the average mortgage only takes up about 28% of the median household income. That affordability makes it easier for new buyers to begin what Chmura calls “the laddering process” — buying early, building equity and using that wealth to move up later.
Pittsburgh, Pennsylvania
For young buyers, Pittsburgh has long been a welcoming place. Nearly 43% of residents under 35 already own homes here, according to Construction Coverage, and Realtor.com named it the fifth most popular housing market in the U.S. in 2024.
Local programs from the Urban Redevelopment Authority and state programs through the Pennsylvania Housing Finance Agency help make down payments more manageable, especially when paired with Federal Housing Administration (FHA) or conventional mortgages.
“One thing I tell buyers is to really partner with a local lender,” Chmura said. “They know the programs and incentives specific to that area that can save you thousands.”
Tampa, Florida
While Tampa’s average home price — about $375,000 according to Zillow — isn’t the lowest, rising inventory is shifting power back to buyers. New developments in communities such as Land O’ Lakes and Riverview are flooding the market with fresh options.
“Builders here are motivated,” said Chmura. “They’re offering incentives like covering closing costs or rate buy-downs to get deals done.”
She also notes that Florida’s Homestead program is a hidden gem for first-time owners, allowing them to knock up to $50,000 off their home’s assessed value.
“That’s a huge benefit that a lot of people don’t even realize exists,” she said.
St. Louis, Missouri
Affordability is St. Louis’s strongest selling point. Zillow pegs the median home price at $185,000 — well below the national average — making monthly payments easier to manage.
At the same time, the job market is robust: The U.S. Bureau of Labor Statistics ranked St. Louis among the nation’s top job markets, thanks to low unemployment and steady growth. For first-time buyers, that combination of cheap housing and stable employment makes it easier to buy with confidence.
Chmura points out that looking slightly outside the downtown core often unlocks even more value: “You don’t always have to be in the center of the city. Sometimes the outlying areas have better affordability and more options.”
Cleveland, Ohio
With an average home price of just $117,000 according to Zillow, Cleveland offers one of the lowest barriers to entry in the country.
Through the Ohio Housing Finance Agency, first-timers also have access to FHA, Veterans Affairs (VA), U.S. Department of Agriculture (USDA) and conventional loans with affordable fixed rates. Chmura said this is exactly where working with the right lender matters.
“A local lender can walk you through tiered rate-reduction strategies, down payment help, or even grant programs,” she added. “That’s money on the table a lot of buyers miss if they don’t ask.”
Buffalo, New York
For the second year running, Zillow ranked Buffalo the hottest housing market in the U.S. — and it’s easy to see why. The average home price hovers around $245,000, and the city also benefits from job growth outpacing new construction.
Nearby towns like Tonawanda offer short commutes, small businesses and affordable price-to-income ratios, giving first-timers even more options. For Chmura, the biggest mistake buyers can make this year is overthinking it.
“Analysis paralysis is real,” she said. “If you’re waiting for the perfect moment, you could miss your chance. Right now, you can negotiate, sellers are more flexible and programs exist to help. That’s a sweet spot for first-time buyers.”
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